ED/PSYCH 

LIB. 

LB 

2334 

C21s 


CARNE3IE  FOUNDATION  FOR  THE 
ADVANCEMENT  OF  TEACHING 

STANDARD  FORMS  FOR  FINANCIAL 
REPORTS  OF  COLLEGES,  UNIVERSITIES 
AND  TECHNICAL  SCHOOLS... 


THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


THE  CARNEGIE  FOUNDATION 
FOR  THE  ADVANCEMENT  OF  TEACHING 


STANDARD  FORMS  FOR  FINANCIAL  REPORTS 

OF  COLLEGES,  UNIVERSITIES,  AND 

TECHNICAL  SCHOOLS 


BULLETIN  NUMBER  THREE 


JUNE   1910 


THE  CARNEGIE  FOUNDATION 
FOR  THE  ADYANCEMENT  OF  TEACHING 


STANDARD  FORMS  FOR  FINANCIAL  REPORTS 

OF  COLLEGES,  UNIVERSITIES,  AND 

TECHNICAL  SCHOOLS 


BULLETIN  NUMBER  THREE 


576  Fifth  Avenue 
New  York  City 


D.   B.   UPDIKE,  THE  MERRYMOUNT  PRESS,   BOSTON 


'<JI^ 


t^ 


CONTENTS 

PAOE 

Introduction  1 

Forms  13 

Schedule  A       Summaries  of  Income,  Expense,  Assets,  and  Liabilities  15 

Schedule  B-1    Income  16 

Schedule  B-2    Details  of  Income  from  Tuitions  17 

Schedule  C-1    Expenditures  18 

Schedule  C-2    Departmental  Expenses  19 

Schedule  D       Balance  Sheet  20,  21 

(  Cash  Receipts  and  Disbursements  ) 

Schedules    |  Cash  Balance                                     }  *^ 

Schedule  F-1    Notes  Receivable  23 

Schedule  F-2    Accounts  Receivable  24 

Schedule  F-3    Rents  Receivable  25 

Schedule  F-4    Net  Income  from  Rents  25 

Schedule  G-1   Interest  and  Dividends  accrued  on  Securities.  General  In- 
vestments 26 

Schedule  G-2  Interest  and  Dividends  accrued  on  Securities.  Special  In- 
vestments 26 

Schedule  H      Securities :  Bonds,  Stocks  and  Real  Estate  Mortgages  27 

Schedule  I        Investments  in  Real  Estate  other  than  University,  or  College, 

Grounds  and  Buildings  28 

Schedule  J        Educational  Plant:  Lands,  Buildings,  and  Equipment  29 

Schedule  K       Additions  to  Lands,  Buildings,  and  Equipment  30 

Schedule  L       Reserve  for  Depreciation  on  Lands,  Buildings,  and  Equipment  30 

Schedule  M      Notes  Payable  31 

Schedule  N       Accounts  Payable  32 


1  ^9^>'v^n 


iv  CONTENTS 

Schedule  O  Bonds  and  Mortgages 

Schedule  P  Endowment  Funds  for  General  Purposes 

Schedule  Q  Endowment  Funds  for  Designated  Purposes 

Schedule  R  Gains  and  Losses  on  General  Investments 

Schedule  S  Surplus  Accounts 


33 
84 
35 
36 
37 


INTRODUCTION 

THE  present  bulletin  is  the  result  of  a  prolonged  inquiry  concerning  the  prac- 
tice of  universities  and  colleges  in  the  United  States  in  the  rendering  of  public 
financial  statements  of  their  receipts  and  of  their  expenditures.  It  represents  also  the 
results  of  many  conferences  with  the  financial  officers  of  colleges  and  universities,  as 
well  as  with  public  accountants  and  others  familiar  with  the  object  which  -such  finan- 
cial statements  should  serve. 

Tax-supported  institutions  are  required  by  law  to  print  an  annual  detailed  state- 
ment of  their  receipts  and  expenditures.  These  reports  in  some  cases  simply  give  the 
list  of  sepai'ate  vouchers.  WTiile  this  may  have  a  value  in  complying  with  the  state  law, 
such  reports  serve  only  a  limited  purpose  in  showing  the  actual  operations  of  the  in- 
stitutions concerned.  Nevertheless,  it  is  true  that  the  tax-supported  institutions  have 
had  a  real  source  of  strength  by  reason  of  this  enforced  publicity. 

Among  endowed  institutions  only  a  small  minority  publish  annual  financial  state- 
ments. The  great  mass  of  institutions  of  higher  learning  in  the  United  States  bear- 
ing the  name  college  or  university  make  no  public  accounting  of  the  disposition  of 
the  moneys  which  they  receive. 

It  seems  clear  that  both  from  the  standpoint  of  its  own  efficiency  no  less  than 
from  the  standpoint  of  its  obligation  to  the  public,  every  public  institution  like  a 
college  should  print  annually  a  report  as  to  the  use  of  the  moneys  which  it  has  re- 
ceived. It  is  in  the  hope  of  facilitating  this  public  duty,  and  with  the  hope  further  of 
bringing  about  some  uniformity  in  these  reports,  that  the  present  study  was  under- 
taken. In  its  prosecution  the  effort  has  continually  been  made  to  avoid  the  complexi- 
ties of  too  great  detail  and  to  reduce  the  fnformation  which  ought  to  be  given  to  the 
simplest  and  most  intelligible  form. 

In  order  to  do  this  it  is  necessary  to  know  with  some  definiteness  two  things: 
(1)  Who  are  the  persons  who  make  use  of  financial  reports  from  colleges;  and  (2)  What 
do  those  who  examine  such  reports  wish  to  ascertain  from  them? 

From  the  somewhat  extended  inquiry  which  has  been  made  it  may  be  stated  with 
definiteness  that  the  reports  of  the  financial  officers  of  colleges  are  read  by  very  few 
people,  and  these  may  be  classified  in  the  following  three  groups : 

1.  Trustees,  alumni,  and  friends  of  the  institution  who  are  directly  interested 
in  its  welfare; 

2.  Men  of  means  who  contemplate  gifts  to  colleges  or  who  have  made  such  gifts; 

3.  Individuals  and  agencies  like  the  United  States  Bureau  of  Education  engaged 
in  a  study  of  educational  methods  and  cost. 

It  seems  also  clear  from  the  inquiries  which  I  have  been  able  to  make  that  these 
three  groups  seek  to  ascertain  essentially  the  same  fundamental  facts  concerning  the 
financial  conduct  of  colleges  and  universities,  with  the  addition  that  students  of  edu- 


2  INTRODUCTION 

cation  are  interested  not  only  in  the  statistics  of  a  single  institution,  but  in  com- 
parative statistics  as  well. 

It  may  be  assumed  also  that  each  of  these  groups  of  readers  of  financial  reports 
desires  in  the  first  place  the  presentation  of  the  financial  status  and  conduct  of  an 
institution  in  gross.  They  all  ask  three  fundamental  questions : 

1.  What  is  the  total  income  of  the  institution  for  the  yeai'? 

2.  What  is  its  annual  expenditure? 

3.  What  are  the  assets  at  the  end  of  the  year? 

A  considerable  number  of  those  who  examine  reports  are  satisfied  when  these 
leading  facts  are  known,  and  all  subsequent  information  which  can  be  given  consists 
really  of  details  concerning  these  three  exhibits.  The  practical  questions  which  have 
to  be  met  are:  What  are  the  significant  details  to  show?  and,  To  what  extent  must 
the  analysis  of  assets,  liabilities,  income,  and  expenditure  be  carried  in  order  to  show 
the  significant  needs  or  to  test  the  quality  of  the  expenditure? 

The  answers  to  these  questions  depend  not  so  much  on  expert  accounting  skill  as 
upon  sound  business  judgment,  combined  with  some  educational  appreciation  of  the 
relation  of  the  cost  of  education  to  its  efficiency. 

In  the  schedules  presented  herewith  Schedule  A  shows  the  gross  summaries  which 
indicate  the  condition  of  the  institution  at  the  end  of  its  fiscal  year  and  its  income 
and  expenditures  during  the  year.  These  give  the  concise  view  of  the  financial  status 
of  the  institution  which  the  reader  first  desires  to  know.  The  schedules  which  then 
follow  are  intended  to  offer,  in  such  detail  as  may  be  sufficient  and  not  burdensome, 
the  significant  items  of  assets,  liabilities,  receipts,  and  expenditures. 

While  details  are  included  which  will  be  needed  only  in  the  case  of  a  large  insti- 
tution with  many  departments,  the  report  is  also  arranged  for  the  use  of  any  college, 
however  simple  its  organization.  To  provide  the  material  for  such  an  exhibit  as  is 
here  suggested  it  is  only  necessary  that  the  ordinary  details  of  bookkeeping  shall  be 
undertaken  in  some  systematic  form. 

I  venture  to  urge  again  the  duty  of  every  college,  whether  supported  by  taxation 
or  by  endowment  and  tuition  fees,  to  make  annually  a  report  to  the  public  of  its 
financial  operations.  The  state  institutions,  as  I  have  stated,  are  required  by  law  to 
do  this ;  the  absence  of  such  a  practice  has  been  a  source  of  much  of  the  looseness 
which  has  characterized  the  financial  conduct  of  many  colleges.  The  college  has 
everything  to  gain  by  opening  its  books  to  the  public,  and  those  who  give  to  col- 
leges will  more  and  more  generally  insist  upon  having  a  definite  statement  of  the  use 
which  the  college  has  made  of  its  money.  No  college  which  refuses  to  do  this  deserves 
to  be  entrusted  with  money.  There  can  be  no  question,  also,  but  that  colleges  and 
universities  will  be  less  worldly  and  less  commercial  in  their  standards  in  proportion 
as  they  accept  clearly  their  financial  limitations.  In  the  light  of  complete  publicity 


INTRODUCTION  8 

sound  financial  standards  as  well  as  sound  educational  ones  will  tend  to  drive  out 
poor  standards. 

Second,  I  wish  to  urge  that,  whether  a  college  follows  the  exact  schedules  sug- 
gested here  or  not,  those  who  make  its  financial  reports  should  seek  to  segregate  those 
items  of  income  and  expense  which  reveal  the  significant  lines  of  expenditure,  such, 
for  example,  as  salaries  of  teachers,  the  cost  of  administration,  the  upkeep  of  the 
physical  plant,  the  expenses  of  different  departments,  and  the  like. 

Every  effort  has  been  made  to  simplify  as  far  as  possible  the  schedules  which  fol- 
low, and  it  is  necessarily  assumed  that  they  will  be  adjusted  by  each  institution  to 
meet  its  own  needs.  As  before  stated,  these  schedules  are  designed  primarily  as  a 
form  for  an  acceptable  annual  exhibit  of  the  financial  operations  of  an  educational 
institution.  On  the  other  hand,  they  are  suggestive  of  a  method  of  bookkeeping.  But 
it  must  be  remembered  that  the  actual  keeping  of  the  accounts  from  day  to  day, 
especially  the  designing  of  a  cash-book  best  suited  to  the  needs  of  an  institution 
and  best  adapted  to  a  minimum  expenditure  of  energy,  has  in  recent  years  become 
a  profession.  In  whatever  method  the  books  are  kept  the  data  here  called  for  should 
be  easily  obtainable  from  them. 

A  word  may  be  said  concerning  the  best  date  for  the  beginning  of  the  fiscal  year. 
At  present  there  is  no  uniformity  in  practice  among  institutions  of  learning  in  this 
matter.  The  majority  of  institutions  which  issue  financial  statements  begin  the  year 
as  of  date  July  1,  and  this  is  apparently  the  most  convenient  date.  It  is,  therefore, 
suggested  that  colleges  and  universities  adopt  July  1  as  the  beginning  of  the  fiscal 
year  in  the  interest  of  uniformity  and  comparability.  It  seems  to  be  the  only  date 
upon  which  agreement  could  be  had,  and  it  has  the  additional  advantage  of  coin- 
ciding with  the  fiscal  year  of  the  general  government,  of  many  states,  and  of  many 
business  enterprises. 

While  the  schedules  which  follow  are  in  most  cases  self-explanatory,  the  following 
statements  are  made  in  the  interest  of  greater  clearness. 

Schedule  A 
No  comment  is  necessary  regarding  this  schedule.  It  gives  in  most  condensed  form 
a  view  of  the  income  and  expenditure  and  the  assets  and  liabilities  of  the  institution. 

Schedule  B-1 
This  schedule  shows  under  a  group  of  distinguishing  headings  the  income  for  the 
year. 

Schedule  B-2 

This  schedule  shows  an  analysis  of  the  first  item  of  the  preceding  schedule.  Such 
an  exhibit  is  of  value  both  from  the  educational  and  the  financial  standpoint.  Col- 
leges have  been  in  the  habit  of  receiving  many  students  at  reduced  tuition,  in  many 
cases  giving  to  a  considerable  group  free  tuition.  The  burden  which  this  entails  is 


4  INTRODUCTION 

not  generally  understood.  Whether  it  be  a  wise  practice  or  not  those  interested  in 
the  college  ought  to  know  what  this  practice  actually  costs.  The  acceptance  of  a 
scholarship  fund  generally  means  an  assumption  by  the  college  of  an  additional  load. 
Such  a  fund  is  not  an  endowment  of  the  college,  but  a  subsidy  to  students  dispensed 
by  the  college.  The  fact  ought  to  be  made  clear  in  a  financial  statement  both  for  the 
benefit  of  the  college  and  of  those  who  mean  to  give. 

Schedule  C-1 
This  schedule  shows  under  appropriate  heads  the  large  items  of  expenditure,  such 
as  the  costs  of  teachers'  salaries,  administration,  laboratory  maintenance,  upkeep  of 
the  physical  plant.  The  effort  has  been  made  to  introduce  only  significant  group- 
ings. While  the  form  covers  the  operations  of  a  large  university  its  applicability  to 
those  of  a  small  college  is  evident. 

Schedule  C-2 
The  preceding  table  shows  the  large  items  of  expenditure.  The  details  of  these 
expenditures  can  be  carried  out  to  any  length.  The  object  sought  is  to  go  only  so 
far  as  will  serve  the  needs  of  those  who  use  such  reports.  Any  trustee  of  a  university 
who  is  sufficiently  interested  to  study  such  a  report  will  desire  to  know  not  only  the 
distribution  of  the  income  as  between  the  college,  the  law  school,  and  the  medical 
school,  for  example,  but  he  will  also  wish  to  know  how  much  the  college  spends  upon 
the  teaching  of  history,  how  much  upon  mathematics,  and  upon  other  departments. 
When  the  institution  is  a  college,  this  information  is  likewise  desired.  Schedule  C-2 
shows  the  departmental  expenditures  in  such  detail  as  seems  desirable. 

Schedule  D:  Balance  Sheet 

The  balance  sheet  should,  of  course,  contain  all  of  the  assets  and  all  of  the  liabili- 
ties of  the  institution  at  the  close  of  business  on  the  last  day  of  its  financial  year, 
say  June  30.  Each  class  of  assets  and  of  liabilities  should  be  grouped  under  distin- 
guishing headings,  as  sho\vn  in  the  form,  without  too  much  detail,  so  that  the  bal- 
ance sheet  will  show  at  a  glance  the  financial  condition  of  the  institution.  Full  details 
making  up  the  totals  of  the  various  items  shown  on  the  balance  sheet  should  be  given  on 
separate  schedules,  forms  for  which  are  presented  and  explained  on  the  following  pages. 

The  balance  sheet  is  divided  into  three  parts,  as  follows  : 

1.  Current  assets  contrasted  with  current  liabilities  and  balanced  by  an  account 
which  may  be  either  a  surplus  (of  assets)  or  a  deficiency. 

2.  Investments  contrasted  with  endowments  and  other  permanent  funds,  exhibit- 
ing a  surplus  (of  investments)  or  a  deficiency. 

3.  Educational  plant  assets,  land,  buildings  and  equipment,  contrasted  with  en- 
dowments and  other  funds,  or  capital  accounts,  which  have  been  expended  upon  the 
plant. 


INTRODUCTION  5 

Every  educational  institution  should  exhibit  accurately  the  first  part  of  this  bal- 
ance sheet,  i.  e.,  current  assets  and  current  liabilities  with  the  resulting  surplus  or 
deficit. 

Every  endowed  institution  should  also  exhibit  the  second  part :  investments  and 
endowments.  The  third  part,  while  important,  is  by  no  means  as  important  as  the 
other  two.  It  will  add  much  toward  a  comprehensive  view  of  the  institution  as  a 
whole  whenever  part  three  is  exhibited  in  full,  but  there  are  many  institutions  whose 
records  in  respect  to  costs  of  plant  and  equipment  are  far  from  complete.  It  may  be 
that  in  the  majority  of  the  older  colleges  and  schools  no  reasonably  accurate  state- 
ment of  the  values  of  plant  and  equipment  could  be  given  in  the  balance  sheet  un- 
less a  new  and  complete  appraisal  is  made  of  all  such  property.  Such  an  appraisal 
is  a  tedious  and  costly  piece  of  work,  which  should  not  be  undertaken  unadvisedly. 
Such  appraisals,  however,  will  be  found  unavoidable,  sooner  or  later,  in  all  univer- 
sity and  college  accounting,  just  as  such  appraisals  have  been  found  essential  for  the 
public  interest  for  a  clear  understanding  of  conditions  in  railways  and  other  public 
service  corporations  throughout  the  country. 

As  the  schedules  which  exhibit  the  funds  of  the  institutions  and  the  related  income 
are  referred  to  in  several  places  on  the  balance  sheet  and  on  the  income  account,  a 
brief  general  explanation  seems  in  order  at  this  point.  College  accounting  for  endow- 
ments and  other  funds  of  the  institution  must  consider  both  principal  and  income 
of  each  fund. 

Gain  or  Loss  on  Investments 

Against  the  principal  of  a  particular  fund  a  college  may  hold  specific  securities 
or  an  undivided  portion  of  its  general  investments.  These  investments  change  from 
time  to  time.  Securities  and  real  estate  may  be  sold,  resulting  in  either  a  gain  or 
loss  to  the  institution.  Such  gains  or  losses  fall  naturally  into  two  classes,  first,  those 
incurred  from  the  sales  of  specific  investments  and,  second,  those  incurred  from  the 
sales  of  general  investments.  If  the  security  sold  belongs  to  a  particular  fund  the  gain  or 
loss  from  such  a  sale  can  readily  be  credited  or  charged  to  the  principal  of  this  fund. 

If,  on  the  other  hand,  the  security  sold  is  a  part  of  the  general  investment  cover- 
ing numerous  funds,  it  is  obviously  difficult  to  distribute  any  gains  or  losses  arising 
from  a  sale  over  all  the  funds.  It  is  a  great  deal  easier  and  quite  as  equitable  to  put 
all  such  entries  into  a  general  account  called  Gains  and  Losses  on  General  Invest- 
ments. If  this  account  shows  a  credit  balance  it  indicates  a  net  gain  in  handling  in- 
vestments, and  is  an  accumulation  of  capital  for  the  institution  to  account  for.  A 
debit  balance,  on  the  other  hand,  indicates  a  loss  in  handling  investments  which 
should  be  made  up  if  possible  and,  in  any  event,  should  not  be  hidden.  This  item  has 
therefore  been  inserted  in  the  balance  sheet,  but  on  the  credit  side  only,  as  it  is  to  be 
hoped  that  no  institution  will  have  occasion  to  show  an  accumulating  loss  of  this 
character. 


6  INTRODUCTION 

Surplus  Income 

The  income  of  a  fund  is  directly  related  to  the  investments  of  its  principal.  If  a 
fund  has  its  own  special  investments,  its  income  is  solely  derived  from  these  in- 
vestments. If,  on  the  other  hand,  the  fund  is  invested  with  others,  its  income  is  its 
pro  rata  share  of  the  income  from  these  general  investments. 

In  either  case,  if  the  current  income  is  not  entirely  expended  from  year  to  year 
the  unexpended  balance  will  remain  for  future  use,  unless,  by  some  provision  of  the 
gift  which  created  the  fund,  such  balances  are  required  to  be  added  to  its  principal. 
The  income  of  different  funds  (and  the  unexpended  balances  of  this  income)  may  be 
restricted  in  use  to  designated  purposes,  or  may  be  available  for  the  general  purposes 
of  the  institution.  When  there  are  such  balances  of  unexpended  income  the  accumu- 
lation should  appear  in  two  items  on  the  balance  sheet,  and  the  details  should  be 
set  up  in  two  classes,  as  outlined  in  schedule  S. 

With  this  introduction,  we  may  proceed  to  consider  the  remaining  schedules  re- 
ferred to  on  the  balance  sheet. 

Schedule  E:  Cash  Receipts  and  Disbursements  and  Cash  Balances 
This  schedule  exhibits  the  gross  cash  receipts  of  the  year  contrasted  with  the  gross 
cash  disbursements,  together  with  the  cash  balances  at  the  beginning  and  at  the  end 
of  the  year.  The  schedule  also  calls  for  details  of  cash  on  hand,  such  as  cash  held  by 
the  treasurer,  the  librarian,  etc.,  to  meet  cuiTent  expenses.  Each  official  and  the  amount 
held  by  him  should  be  shown  separately. 

Present  business  custom  requires  that  all  moneys  received  be  deposited  in  the 
bank  and  that  all  payments  be  made  by  check.  For  sundry  small  expenditures  a 
fund  consisting  of  a  round  sum — say  $500  or  SI  000,  according  to  the  size  of  the 
business  conducted — should  be  held  on  hand,  out  of  which  payments  in  cash  are 
made.  At  the  end  of  each  week  or  month  a  detailed  voucher  for  these  expenditures 
should  be  made  out  and  a  check  drawn  for  the  total  thereof  to  replenish  the  fund. 
This  method  is  in  use  in  business  so  generally  that  this  suggestion  may  seem  unne- 
cessary, although  few  colleges  follow  the  practice.  If  pay-roll  or  salary  accounts  are 
paid  in  currency,  one  check  may  be  drawn  for  the  exact  amount  of  the  pay-roll  and 
charged  to  a  pay-roll  account,  which  should  be  distributed  subsequently  by  journal 
entry. 

Schedule  F-1  :  Notes  Receivable 
This  schedule  is  designed  to  show  all  of  the  notes  receivable  due  to  the  institu- 
tion, such  as  notes  received  for  money  loaned  on  collateral  securities,  notes  received 
from  students,  etc.  A  description  of  each  note — the  name  of  the  maker,  the  date  of 
the  note,  and  the  date  when  the  note  falls  due — should  be  given,  and  also,  where 
collateral  securities  are  held  therefor,  a  statement  of  such  securities  should  be  given. 


INTRODUCTION  7 

Schedule  F-2  :  Accounts  Receivable 
This  schedule  merely  calls  for  a  list  of  all  accounts  receivable  by  the  institution 
at  the  end  of  the  financial  year  and  requires  no  further  comment. 

Schedule  F-3:  Rents  Receivable 
This  schedule  is  designed  to  show  the  income  from  the  rented  property  during  the 
year,  the  collections  as  made,  and  finally  the  balance  uncollected  to  correspond  with 
the  amount  stated  among  the  current  assets  on  the  balance  sheet. 

Schedule  F-4  :  Income  from  Rents 
This  schedule  is  intended  to  show  the  profit  or  loss  to  the  institution  from  the 
operation  of  its  rented  property  during  the  year.  Income  from  general  investments 
is  shown  separately  from  income  from  special  investments. 

Schedule  G-1 
Interest  and  Dividends  accrued  on  Securities.  General  Investments 

Schedule  G-2 
Interest  and  Dividends  accrued  on  Securities.  Special  Investments 
These  schedules  exhibit  the  interest  earned  in  comparison  with  the  interest  actually 
received,  and  the  increase  or  decrease  of  interest  accrued  at  the  end  of  the  year. 

Schedule  H:  Securities,  Bonds,  Stocks,  etc 
This  schedule  gives  a  list  of  the  securities  held  by  the  institution  and  shows  the 
transactions  in  these  securities  during  the  year.  Some  institutions  maintain  the  prac- 
tice of  furnishing  the  approximate  market  value  of  such  securities;  others  do  not. 

Schedule  I:  Investments  in  Real  Estate 
other  than  University  or  College  Grounds  and  Buildings 

Many  institutions,  in  addition  to  their  investments  in  bonds  and  stocks,  invest  to 
some  extent  in  real  estate  and  manage  such  property  themselves,  collecting  all  rents 
and  paying  all  taxes  and  other  expenditures  in  connection  with  the  maintenance  of 
the  properties. 

Schedule  I  is  designed  to  show  all  of  such  properties  owned  by  the  institution  at 
the  beginning  of  each  financial  year,  the  properties  purchased  and  the  properties  sold 
during  the  financial  year,  and  the  properties  owned  at  the  end  of  the  year. 

In  the  first  column  should  be  entered  the  figures  from  the  previous  year"'s  accounts. 
The  figures  to  be  inserted  in  the  second  column  are  intended  to  cover  any  additions 
and  betterments  effected  during  the  year,  such  as  additions  to  buildings  and  land, 
or  equipment  purchased. 


8  INTRODUCTION 

Schedules  J,  K,  and  L  :  Educational  Plant.  Lands,  Buildings,  and  Equipment 

All  of  the  land,  buildings,  and  equipment  necessary  for  the  can-ying  on  of  educa- 
tional work  in  connection  with  the  institution  should  be  shown  in  these  schedules, 
which  should  be  considered  together. 

Schedule  J  is  a  summary  of  the  institution"*s  plant,  showing  the  book  values  at  the 
end  of  the  year.  Against  these  assets,  the  accounts  should  provide  a  reserve  for  depre- 
ciation sufficient  to  cover  the  wear  and  tear  not  made  good  by  ordinary  repairs. 

The  buildings  and  equipment  deteriorate  with  age,  however,  like  other  structures, 
and  there  comes  a  time  when  current  repairs  no  longer  suffice  and  when  rebuilding 
becomes  necessary.  Some  of  the  departmental  equipment  must  be  discarded  to  be  re- 
placed by  more  up-to-date  apparatus.  Good  accounting  should  distribute  these  losses 
over  a  series  of  years,  by  making  entries  for  depreciation  and  gradually  writing  down 
the  value  of  the  assets. 

This  depreciation  may  be  provided,  as  in  the  case  of  the  investment  real  estate, 
for  individual  buildings,  or  departmental  equipment  (as,  for  example,  the  fixtures  of 
a  laboratory),  or  one  or  more  general  reserves  may  be  built  up  by  the  depreciation 
charged  from  year  to  year. 

Real  estate  used  for  educational  work  is  not  a  business  asset  in  the  same  sense  as 
real  estate  held  as  an  investment.  For  this  reason  the  value  of  the  educational  plant 
with  the  additions  and  depreciations  during  the  year  are  made  a  separable  part  of 
the  Balance  Sheet,  Schedule  D.  It  is  unquestionably  to  be  desired,  however,  that  an 
effort  be  made  to  place  true  values  on  all  tangible  assets.  In  this  way  only  can  com- 
parisons among  similar  institutions  be  made  in  the  matter  of  costs ;  and,  further,  only 
by  this  means  may  a  college  fairly  consider  the  value  of  its  location  with  respect  to 
other  possible  sites.  In  years  past  the  value  of  accounting  was  largely  an  historical 
one,  and  the  question  as  to  whether  the  lands  were  overvalued  or  undervalued  was 
not  significant.  But  now  that  these  valuations  in  accounting  are  to  assist  in  secur- 
ing costs  and  in  governing  the  financial  policy,  it  is  quite  necessary  to  fix  values  for 
real  assets  as  accurately  as  possible,  and  within  broad  limits  to  change  the  valua- 
tions as  conditions  change.  To  this  end  the  following  suggestions  are  offered: 

1.  It  is  not  a  requisite  of  good  accounting  to  change  the  figures  of  a  piece  of  pro- 
perty every  time  the  market  seems  to  change,  but  it  is  important  that  these  changes 
be  made  periodically,  preferably  at  stated  intervals  of  from  one  year  to  three  or  five 
years.  Unless  an  effort  is  made  to  do  this  at  given  periods,  revaluations  are  apt  to 
occur  only  when  imperative.  So  important  a  feature  of  the  accounts  should  not  be 
left  to  chance. 

2.  In  the  matter  of  lands,  college  property  seems  to  be  divided  into  three  classes: 

(1)  Land,  the  value  of  which  can  be  definitely  determined  from  the  values  of 
surrounding  property,  irrespective  of  the  existence  of  the  college.  Thus,  the 
value  of  the  site  of  Columbia  University  may  be  estimated  by  the  prevailing 


INTRODUCTION  9 

realty  values  of  New  York  City  property  in  its  immediate  vicinity.  The  influ- 
ence of  the  college  upon  the  value  of  the  surrounding  land  is  slight. 

(2)  Land,  the  value  of  which  is  dependent  both  upon  city  realty  value  irrespec- 
tive of  the  existence  of  the  college,  and  upon  the  influence  which  the  college 
itself  exerts  upon  the  immediate  land  values.  Thus,  the  land  occupied  by  Har- 
vard University  is  desirable  property  as  a  residential  district  of  easy  access  to 
Boston.  But  the  existence  of  Harvard  in  Cambridge  also  undoubtedly  holds 
Cambridge  real  estate  at  a  higher  cost  than  if  Harvard  were  not  there. 

(3)  Land,  the  value  of  which  is  dependent  chiefly  upon  the  existence  of  the  col- 
lege itself.  Princeton  University  and  Hampden-Sidney  are  types  of  this  class. 
If  either  of  these  institutions  were  removed  their  sites  would  be  valuable  only 
as  village  property  or  as  farm  land. 

These  variables  cannot,  of  course,  be  sharply  differentiated.  They  may  prove  help- 
ful in  determining  a  book  value  which  should  replace  in  accounting  the  original 
values  fixed  in  some  instances  many  years  ago,  or  the  nominal  values  as  given  fre- 
quently in  other  instances.  It  goes  without  saying  that  if  property  is  purchased  in 
the  open  market,  the  purchase  price  should  be  considered  the  inventory  value  until 
changed  conditions  necessitate  a  revaluation. 

It  is  generally  true  that  the  assessors  of  a  city  or  county  carry  in  their  books  the 
assessed  valuation  of  college  real  estate  even  when  such  property  is  by  law  free  of 
taxation.  It  does  not  seem  to  me  possible  that  any  failure  to  furnish  a  valuation  on 
college  real  estate  used  for  educational  purposes  can  permanently  affect  the  question 
of  their  taxation. 

Schedule  M:  Notes  Payable 

Similar  details  should  be  given  of  notes  payable  by  the  institution  as  have  been 
called  for  in  regard  to  notes  receivable,  i.e.^  the  name  of  the  lender,  the  date  of  the 
note,  and  the  date  of  maturity,  the  rate  of  interest,  and  a  description  of  the  col- 
lateral security  given,  if  any.  Interest  accrued  on  each  note  at  the  end  of  the  insti- 
tution's fiscal  year  should  be  calculated  and  entered  in  the  outer  column,  the  total 
of  which  column  is  to  be  added  to  the  total  principal  and  the  gross  total  of  notes 
payable  and  interest  accrued  thereon  shown  on  the  balance  sheet. 

Schedule  N:  Accounts  Payable 
No  further  details  of  the  accounts  payable  are  required  than  a  list  of  the  names 
and  amounts.  If  a  large  number  of  the  accounts  are  of  small  amount,  to  save  space 
these  can  be  entered  in  one  sum  as  "miscellaneous  accounts."" 

Schedule  O  :  Capital  Liabilities 
This  schedule  calls  for  details  of  the  bonds  and  mortgages  on  the  properties  of 
the  institution,  such  as  the  dates  of  issue  and  the  dates  when  due,  the  rate  of  in- 
terest and  the  dates  when  interest  is  payable,  and  a  short  description  of  the  properties 
mortgaged. 


10  INTRODUCTION 

Schedule  P  :  Endowment  Funds,  or  Trust  Funds,  for  General  Purposes 
Universities  and  colleges  receive  endowments  with  varied  instructions  as  to  how 
the  money  may  be  expended.  Some  endowments  are  received  with  no  restriction  upon 
the  way  in  which  the  money  may  be  used,  in  others  the  principal  is  to  be  kept  intact, 
but  with  no  restriction  as  to  the  purpose  for  which  the  income  may  be  expended. 
In  some  cases  the  amount  given  is  to  be  expended  for  some  designated  purpose,  in 
others  the  principal  is  to  be  kept  intact  while  the  income  is  to  be  expended  for  some 
designated  purpose. 

Schedules  P  and  Q  have  been  designed  to  show  particulars  of  the  endowment 
funds  in  two  classes — general  purposes  and  designated  purposes.  Schedule  P  calls  for 
details  of  endowment  funds  of  the  former  class — general  purposes.  A  short  descrip- 
tion of  the  fund  should  be  made,  giving  the  name  of  the  fund,  the  date  it  was  re- 
ceived, the  name  of  the  donor,  and  the  purpose  for  which  it  was  given.  This  recog- 
nition of  a  gift  in  the  annual  financial  report  is  more  important  than  it  is  gener- 
ally understood  to  be.  The  notes  made  on  the  schedule  under  this  heading,  w^hich 
were  copied  from  certain  college  and  university  reports,  will  give  a  clear  idea  of  the 
information  required.  The  first  three  columns  should  contain  the  amounts  of  the  funds 
originally  received.  The  amounts  of  any  funds  received  during  the  year  should  be  en- 
tered in  the  second  of  these  three  columns.  Columns  are  then  given  to  show  what  por- 
tion of  the  principal  of  each  fund  has  been  expended,  and  a  short  description  should 
be  given  of  what  pui-pose  it  was  expended  for — such  as  additions  to  buildings  or  equip- 
ment, salaries  to  professors,  etc.  At  the  foot  of  these  columns  the  portion  of  the  fund 
expended  is  divided  into  assets  and  expenses.  The  portion  expended  on  additions  to 
buildings,  purchases  of  equipment,  or  for  such  purposes  as  are  additions  to  the  assets 
shown  in  the  balance  sheet,  should  be  shown  in  total  separately  from  the  portion  ex- 
pended for  the  current  expenses  of  the  institution,  such  as  teaching,  etc.  The  column 
"unexpended  principal  at  end  of  year"  should  show  the  amount  of  the  fund  still  in 
the  hands  of  the  trustees  of  the  institution,  which  is  presumably  invested  by  them. 
The  last  columns  should  show  the  income  received  during  the  year  from  these  invest- 
ments in  which  the  unexpended  portions  of  the  funds  are  placed. 

Schedule  Q  :  Endowment  Funds  for  Designated  Purposes 

This  schedule  calls  for  the  same  details  as  in  schedule  P. 

Regarding  the  investment  of  the  unexpended  principal  of  funds  shown  in  schedules 
P  and  Q,  the  treasurers'  reports  of  some  colleges  and  universities  give  exact  details 
of  the  securities  in  which  each  fund  is  invested,  while  the  treasurers'*  reports  of  others 
give  only  the  details  of  the  securities  in  which  each  of  a  few  of  the  larger  funds  is 
invested  and  consolidate  the  smaller  funds,  giving  details  of  the  securities  in  which 
the  total  is  invested.  Others  again  consolidate  all  of  their  funds  and  show  the  details 
of  securities  in  which  the  total  is  invested. 


INTRODUCTION  11 

On  both  schedules  P  and  Q  the  columns  showing  the  present  unexpended  prin- 
cipal of  the  fund  and  the  current  income  are  divided,  to  distinguish  whether  the  fund 
has  specific  investments  of  its  own,  or  is  merged  in  a  group  of  general  investments. 
The  principal  of  a  special  investment  may  be  entirely  different  in  character  from  the 
general  investments  of  the  institution,  and  for  this  reason  the  amount  and  rate  of 
income  on  funds  specifically  invested  may  be  entirely  different  from  the  income  on 
funds  in  the  general  investments. 

The  accompanying  schedules  are  prepared  to  secure  uniformity  of  financial  reports 
of  institutions  of  learning  with  little  change  in  the  bookkeeping  of  such  institu- 
tions, and  in  the  preparation  of  the  schedules  it  has  been  assumed  that  the  unex- 
pended portion  of  endowment  funds  is  invested  in  such  securities  as  are  called  for 
on  schedule  H,  or  in  real  estate,  particulars  of  which  are  called  for  in  schedule  I 
and  that  small  balances  not  invested  in  securities  are  on  deposit  in  bank  accounts. 
It  is  necessary  to  point  out,  however,  that  whenever  the  unexpended  portion  of  any 
one  fund  is  invested  separately,  the  total  income  from  such  investment  during  the 
year  is  the  figure  called  for  to  be  entered  opposite  that  fund  in  the  column  "income 
of  unexpende'd  fund  during  the  year"  on  schedules  P  and  Q.  The  general  income  from 
investments  should  be  apportioned  over  the  endowment  funds  relatively  to  the  unex- 
pended amounts  of  the  remaining  funds. 

Schedule  R:  Losses  and  Gains  on  General  Investments 

This  schedule  exhibits  the  losses  from  sales  of  securities  during  the  year,  or  gains 

from  the  same. 

Schedule  S:  Surplus  Accounts 

This  schedule  exhibits  the  three  classes  of  surplus  accounts  con-esponding  to  the 

three  divisions  of  the  balance  sheet,  schedule  D. 

Bookkeeping 

As  already  mentioned,  it  is  expected  that  these  forms  can  be  filled  up  by  the 
treasurers  of  the  various  universities  and  colleges  from  their  books,  even  though  the 
methods  of  bookkeeping  be  quite  different  in  the  various  institutions.  It  may  be  an- 
ticipated  that  some  of  the  treasurers  will  find  it  necessary  to  analyze  a  number  of 
their  income  and  expense  accounts  to  get  amounts  called  for  in  the  forms,  but  this 
will  not  be  a  serious  matter  after  it  has  been  done  once. 

It  is  doubtless  impossible  to  provide  an  absolutely  uniform  system  of  bookkeep- 
ing among  institutions  of  learning,  but,  if  the  forms  here  presented  are  to  be  gen- 
erally adopted  by  the  administrators  of  institutions  in  the  publication  of  their  annual 
financial  reports,  it  would  be  exceedingly  advantageous  for  the  treasurers  of  the  vari- 
ous institutions  to  alter  the  headings  of  the  income  and  expense  accounts  in  their 
ledgers  so  that  the  latter  shall  conform  with  the  headings  herein  in  order  to  facil- 
itate the  work  of  preparing  the  annual  reports.  The  names  of  the  accounts  in  the  cash- 


12  INTRODUCTION 

books  and  jouraals  from  which  the  entries  are  posted  into  the  ledgers  should  also  be 
changed  con'espondingly.  All  of  these  changes  are  simple  ones  and  should  not  dis- 
turb materially  sound  accounting  methods  which  may  have  been  used  in  the  past  by 
the  various  institutions. 

Suggestions  Invited 
The  treasurers  or  other  officers  of  the  various  institutions  are  invited  to  send  to 
the  Carnegie  Foundation  for  the  Advancement  of  Teaching  any  suggestions  which 
may  occur  to  them  relating  to  the  improvement  of  the  attached  forms,  and  they  are 
urged,  even  at  the  cost  of  some  labor,  to  assist,  so  far  as  possible,  in  the  effort  to  se- 
cure reports  from  all  colleges  which  may  be  not  only  accurate,  but  also  comparable 
with  similar  reports  of  other  institutions. 

Henry  S.  Pritchett. 


June,  1910. 


STANDARD  FORMS  FOR  FINANCIAL  REPORTS 

OF 
COLLEGES,  UNIVERSITIES,  AND  TECHNICAL  SCHOOLS 


SUMMARIES 

FOR  Yeah 


Income  and  Expenditure 
Total  income  for  year,  Schedule  B-1 


Total  expenditure  for  year,  Schedule  C-1. 
Net  surplus  or  deficit  for  year 


Assets  and  Liabilities 
Current  assets  at  end  of  year.  Schedule  D 


Current  liabilities  at  end  of  year.  Schedule  D 
Surplus  or  deficit  of  current  assets 


Investment  assets  at  end  of  year.  Schedule  D 

Investment  liabilities  at  end  of  year.  Schedule  D . 
Surplus  or  deficit  of  investment  assets 


Educational  Plant 
Value  of  lands,  buildings,  and  equipment.  Schedule  D 


Debt:  mortgages,  notes,  etc.,  against  plant.  Schedule  D.. 
Net  investment  in  educational  plant 


Schedule  A 


15 


Schedule  B-1 


INCOME 


Description 


Items 


Totals 


Income  from  Students  : 
Tuition  fees.  Schedule  B-2 
Incidental  fees,  matriculation  fees 
Special  fees  for  libraries,  laboratories,  degrees,  etc. 
For  supplies,  chemicals,  laboratory  materials,  etc. 
For  dormitories  (net),  detail  sheet 
For  dining-halls  (net),  detail  sheet 

Income  from  Investments  of  : 
Endowments  for  general  purposes.  Schedule  P 
Endowments  for  designated  purposes.  Schedule  Q 
Other  Investments  (if  any) 

Income  from  Grants  by  Nation,  State,  and  Special  Taxation 
State  aid  :  Income  from  endowment  granted  by  state 
Tax  levy  for  current  expenses  (rate  mills) 
Appropriation  for  current  expenses 
Tax  levy  for  buildings  or  for  other  special  purposes 
Appropriations  for  buildings  or  for  other  special  purposes 
Federal  aid :  Income  from  land  grant,  act  of  July  2,  1862 
Income  from  other  land  grants 

Additional  endowment  acts  of  August  30,  1890,  and  March  4 
1907 


Gifts  for  Current  Expenses  : 
For  General  Purposes 

{Details) 

For  Designated  Purposes 

{Details,  such  as  gifts  for  immediate  use  on  lands,  huildings,  etc.) 

Income  from  Other  Sources  : 
{Details) 


Total  Income 


16 


RECEIPTS  FROM  TUITIONS 


Schedule  B-2 


College 

of 

Liberal 

Arts 

Law 
School 

Medical 
School 

Etc. 

Number  of  students  registered 

Number  of  students  paying  full  tuition 

Receipts  from  students  paying  full  tuition 

Number  of  students  paying  part  tuition 

Receipts  from  students  paying  part  tuition 

Number  of  students  admitted  without  payment 

Total  receipts  of  tuition  from  all  students 

Total  amount  of  tuition  paid  from  scholarship  or  fellowship  funds 

Total  receipts  on  account  of  tuition  corresponding  to  first  item  under  income, 
Schedule  B-1 

Average  tuition  paid  per  student  in  each  school  or  department 



17 


Schedule  C-1 


EXPENSE 


Description 


Items 


Totals 


Departmental  Expenses  :  Details  in  Schedule  C-2 
College  of  Liberal  Arts 
College  of  Engineering 
Law  School 
Medical  School 
Dental  School 
Teachers'  College 
Agricultural  School 
Graduate  School 
Other  Colleges,  or  Schools 
(Details) 

Administration  and  General  Expenses  : 
Salaries  of  officers 

(Details) 
Salaries  of  assistants,  stenographers,  etc. 

(Details) 
Expense  of  administrative  officers 

(Details) 

Advertising 
(Details) 

Insurance 
(Details) 

Publication  Expenses 
(Details) 

Purchases  of  Books,  Supplies,  etc. 
(Details) 

Other  General  Expenses 
(Details) 

Operation  and  Maintenance  of  Plant  : 

Salaries  and  wages  of  janitors,  care-takers,  etc. 
Mechanicians'  wages 
Laborers'  wages 
Light,  heat  and  power 
Undergraduate  labor 
Piepairs 
(Details) 

Depreciation 
(Details) 

Expenses  of  Productive  Real  Estate  : 
(Details,  or  Schedule) 

Miscellaneous  Expenses  : 
(Details) 

Total 


Interest 

(Details) 

Total  Expense . 


18 


DEPARTMENTAL  EXPENSES 


Schedule  C-2 


College  or  Department 


College  of  Liberal  Arts 
Mathematics 
English 
Physics 
Chemistry 
Philosophy 
etc. 

Law  School 

Medical  School 


Sala- 
ries 
Pro- 
fessors 


Sala- 
ries In- 
struc- 
tors 


Sala- 
ries 
Assis- 
tants 


Total 

Sala- 
ries 

Teach- 
ing 

Staff 


Pap, 
Clerks 

and 
steno- 
gra- 
phers 


Libra- 
ry 
Budget 


Labo- 
ratory 
Budget 


Re- 
search 


Mis- 
cella- 
neous 


Total 
Cost  of 
College 
or  De- 
part- 
ment 


19 


BALANCE 

For  the  end 


1.  Current  Assets 

Cash  in  banks  and  on  hand  for  current  expenses.  Schedule  E 

Notes  receivable  and  interest  accrued  thereon,  Schedule  F-1 

Accounts  receivable.  Schedule  F-2 >■ 

Rents  receivable.  Schedule  F-3 

Interest  and  dividends  accrued  on  bonds,  mortgages  and  stocks.  Schedules  G-1  and  G-2.. 

Other  current  assets 

Total  current  assets 

Deficiency  of  current  assets  (if  any) 

2.  Investment  Assets  at  end  of  Year 

Securities,  Schedule  II 

Real  estate.  Schedule  I 

Cash  in  banks,  for  investments,  Schedule  E 


I 


Total  investment  assets „ 

Deficiency  of  investment  assets  (if  any) 


Total . 


3.  Educational  Plant,  Lands,  Buildings,  and  Equipment 

Balance  at  beginning  of  year.  Schedule  J $ 

Additions  during  year.  Schedule  K. 

Total 

Less  Depreciation,  Schedule  L 

Balance  at  end  of  year,  Schedule  J $ 

Total  Educational  Plant 8" 

20 


Schedule  D 
SHEET 

OF  THE  "i'EAR 

1.  CuHRENT  Liabilities 

Notes  payable  and  interest  accrued  thereon.  Schedule  M $ 

Accounts  payable.  Schedule  N 

Interest  accrued  on  bonds  and  mortgages,  Schedule  O 

Other  current  habilities 

Total  current  liabilities 

Surplus  of  current  assets  (if  any) 

Total $ 


2.  Ekdowment  Funds,  eic,  at  end  of  Year 

Bonds  or  mortgages,  against  investments,  Schedule  0 

Endowments  Capital  Accounts  : 

Funds  for  general  purposes,  invested,  Schedule  P 

Funds  for  designated  purposes,  invested,  Schedule  Q 

Gain  or  Loss  on  General  Investments,  Schedule  R 

Total  invested  funds 

Surplus  Income,  invested.  Schedule  S: 

From  endowments  for  general  purposes,  etc 

From  endowments  for  designated  purposes 

■       Total  liabilities  endowment  funds,  and  surplus  against  investments 


3.  Educational  Plant.  Endowments  and  Capital  Accounts 

Mortgages  on  Lands,  Buildings,  etc.,  Schedule  O 

Endowments  expended  upon  Lands,  Buildings,  etc..  Schedules  P  and  Q 

Surplus  Income  expended  upon  Lands,  Buildings,  etc.,  Schedule  S 


Total  Educational  Plant . 


21 


Schedule  E 

CASH  RECEIPTS  AND  DISBURSEMENTS 

For  All  Purposes  during  the  Year 

Total  Cash  Receipts 

Total  Cash  Disbursements 

Excess  of  Receipts  {or  Disbursements) 

Cash  Balance  at  beginning  of  year 

Cash  Balance  at  end  of  year 


CASH  BALANCE 
At  End  of  Year 

Cash  on  Deposit  at  banks : 
{Details  as  to  cash  for  immediate  use  and  for  investments) 


Cash  at  offices  : 

{Details  as  to  cash  for  immediate  use  and  for  investments) 


Cash  Balance,  as  above . 


39 


Schedule  F-1 


NOTES  RECEIVABLE 


Description 
OF  Notes  and  Security  therefor 

IF  ANY 


Date 
of 

note 


Date 

■when 

due 


Amount 


Total 

Interest  accrued  at  beginning  of  year. 
Interest  earned  during  year.. 


Rate 

of 

Interest 


Interest  received  during  year 

Interest  accrued  at  end  of  year..., 
Total  notes  and  interest  accrued. 


33 


ScheduU  F-2  ACCOUNTS  RECEIVABLE 

For  Tuition  : 

{Details  arranged  alphabetically)  


Miscellaneous  i 
{Details) 


24 


Schedule  F-3 


RENTS  RECEIVABLE 


Arreaus  of  Rents  at  beginning  of  year $ 

Rents  due  during  year $ 

Total § 

Collections  or  Rents  during  year $ 

Arrears  of  Rents  at  end  of  year § 


Schedule  F-4 


NET  INCOME  FROM  RENTS 

Real  Estate  belonging  to  the 
General  Investments 

Rents  due  during  year $ 

Expenses  :  Taxes $ 

Insurance $ 

Repairs $ 

Commissions $ 

Miscellaneous $ 

Total  Operating  Expenses $ 

Depreciation  Charged $ 

Total $ 

Net  Income  (or  Net  Deficit)  for  year $ 


Real  Estate  belonging  to  the 

Special  Investments 


25 


Schedule  G-1 


INTEREST  AND  DIVIDENDS  ACCRUED  ON  SECURITIES 

General  Investments 


Interest  and  Dividends  accrued  at  beginning  of  year. 

Interest  AND  Dividends  earned  during  year 

Total 

Interest  and  Dividends  received  during  year 


Interest  and  Dividends  accrued  at  end  of  year S_ 


Schedule  G-2 

INTEREST  AND  DIVIDENDS  ACCRUED  ON  SECURITIES 

Special  Investments 

Interest  and  Dividends  accrued  at  beginning  of  year $ 

Interest  and  Dividends  earned  during  year $ 

Total $ 

Interest  and  Dividends  received  during  year % 

Interest  and  Dividends  accrued  at  end  of  year $ 


26 


Schedule  H 


SECURITIES :  BONDS,  STOCKS,  AND  REAL  ESTATE  MORTGAGES 


Description  of  Securities 

Balance  at 

beginning 

of  year. 

Cost 

Purchases 

during 

year. 

Cost 

Sales 

during 

year. 

Cost 

Balance 

at  end 

of  year. 

Cost 

Interest 
Received 

Interest 
Accrued 

Bonds  : 

20,000  Illinois  Central  R.R.  Co.'s  4's,  due 

1022 

etc. 

etc. 

■ 

Stocks : 

400  shares  American  Smelting  &  Refining 
Co.  Preferred 

etc. 

etc. 

Real  Estate  Mortgages  : 

Cornelia  Page,  on  41 W.  47th  St. ,  New  York , 

at  4]^  %,  due  1910 

etc. 

etc. 

Total 

2T 


Schedule  I 


INVESTMENTS  IN  REAL  ESTATE  OTHER  THAN 
UNIVERSITY,  OR  COLLEGE,  GROUNDS  AND  BUILDINGS 


Description  of 
Properties 


Balance 
at  begin- 
ning of 

year. 

Cost 


Pur- 
chases 
during 

year. 

Cost 


Sales 

during 

year. 

Cost 


Balance 

at  end 

of  year. 

Cost 


Schedule  J 
EDUCATIONAL  PLANT:  LANDS,  BUILDINGS,  AND  EQUIPMENT 


Account 

Balance  at 

beginning 

of  year. 

Cost 

Purchases 

during 

year. 

Cost 

Sales 

during 

year. 

Cost 

Balance 

at  end 

of  year. 

Cost 

University  Site,  Campus,  Grounds,  etc' 

Grading,  Planting,  Roads,  Walks,  etc' 

Buildings:' 

{Details) 

Departments'  Equipment  : 

Department 

Furniture  and  fixtures 

Library 

Collections 

etc. 

Department 

Furniture  and  fixtures 

Library 

Collections 

etc. 

Dormitories  : 

Furniture  and  fixtures 

etc. 

Dining  Hall 

Furniture  and  fixtures 

etc. 

'  If  for  any  reason  these  items  are  omitted,  a  full  statement  of  the  cost,  dimensions,  and  other  details  should  be  pre- 
pared. There  should  be  a  full  and  historically  correct  statement  of  the  cost  of  the  grounds  and  buildings,  some- 
what as  follows : 

The  college  grounds  were  acquired  in in  the  following  manner  and  at  the  following  cost  (.here  give 

full  particulars). 

The  main  building  (used  for  recitation  rooms  and  for  the  executive  offices)  is  about by 

built  of  granite  and  brick,  and  was  erected  in at  a  cost  of  S the  funds  being  provided  as 

follows  (here  give  full  particulars). 

Hall  is  about by of  brick  with  stone  trimming  and  is  used  for purposes. 

It  was  built  in and  cost  about  $ the  funds  being  provided  as  follows  (here  give  full  particulars). 

39 


Schedule  K 

ADDITIONS  TO  LANDS,  BUILDINGS,  AND  EQUIPMENT 

Additions  to  Lauds ^ 

{^Details) 

Additions  to  Buildings ® 

{Details) 

Additions  to  Equipment * 

{Details) 

Total  during  year ^ 


Schedule  L 


RESERVE  FOR  DEPRECIATION 
ON  LANDS,  BUILDINGS,  AND  EQUIPMENT 


:: 

Balance 

of  account 

at  beginning 

of  Year 

Credits 

during  the 

year 

Extraor- 
dinary Re- 
pairs charged 

to  Reserve 
during  Year 

Balance 

of  account 

at  End 

of  Year 

For  Depreciation  on  Buildings 

$ 

% 

% 

$ 

For  Depreciation  on  Equipment 

Less  Appreciation  on  Land  (if  any) 

Total 

$ 

Balance  of  Reserve  Account  at  End  of  Yeai 

r 

30 


Schedule  M 


NOTES  PAYABLE 


Notes  Payable  : 
Details  arranged  hy  due  dates 


Total  Notes  Payable 

Interest  accrued 

Total  Notes  Payable  and  Interest  accrued  thereon 


Amount 


Interest  accrued 
at  end  of  year 


31 


Schedule  N 

ACCOUNTS  PAYABLE 

Accounts  Payable: 
Details 


32 


Schedule  O 


BONDS  AND  MORTGAGES 


Bonds  : 
Details 


Against 
Investments 


Against 

Educational 

Plant 


Total 


Interest 
accrued  at 
end  of  year 


Mortgages: 
Details 


Schedule  P 


ENDOWMENT  FUNDS  FOR  GENERAL  PURPOSES 


Name  and 
Description 


FUNDS^ 


The  Original  Endowment 
Fund 

This  fund  was  left  by  John 
Smith,  who  bequeathed 
most  of  his  large  estate  for 
the  establishment  of  a  uni- 
versity and  hospital.  The 
gift  is  free  from  ecclesias- 
tical or  political  control. 
The  university  foundation 
is  without  conditions  ex- 
cept that  the  capital  can- 
not be  used  for  buildings. 

Endowment  Fund  of  1902 
A  fund  given  by  the  citi- 
zens of and  other 

friends  of  the  university 

headed  by  

and at  the 

time  of  the  celebration  of 
the  25th  anniversary  of  the 
opening  of  the  university. 
The  principal  is  to  be  held 
as  a  permanent  fund  ;  the 
income  may  be  used  at  the 
discretion  of  the  trustees 

Henry  S.  Alling 
A  bequest  left  by  him  Oc- 
tober, 1901,  the  income  to  be 
used  for  the  advancement 
of  history  and  political  sci 
ence  and  education,  to  the 
promotion  of  whicli  he  had 
devoted  his  life  (originally 
$42,059.48,  now  $50,000). 

Scholarship  Fund 

Established  in  1894  by  Mrs. 

as  a  me 

morial  to  her  husband.  Five 
Scholarships  of  $100  each 


Total 
princi- 
pal re- 
ceived 
to  be- 
gin- 
ning of 
year 


Addi- 
tions to 
princi- 
pal re- 
ceived 
during 

year 


Total 
princi- 
pal re- 
ceived 
to  end 
of  year 


Expenditures  from  Principal  of  Funds 


Description  of 
how  expended 


Total 
ami.  of 
princi- 
pal ex- 
pended 

to 
begin- 
ning of 

year 


Amount 
ofprin- 

cipal 
ex- 
pended 
during 

year 


Funds  expended  on  Buildings,  etc.,  such  as  are 
carried  in  the  Balance  Sheet  as  Assets. 

Funds  expended  on  Teaching,  etc.,  such  as  are 
charged  in  the  Income  and  Expense  Account 


Total 
amount 
of  prin- 
cipal 
ex- 
pended 
to  end 
of  year 


Unexpended 
Principal  at 
End  of  Year 


In 
general 
Invest- 
ments 


In 
special 
Invest- 
ments 


Total  expended  as  above 

SUMMARY 

Unexpended  principal  at  end  of  year,  in  investments  (Schedule  D). 
Unexpended  principal  at  end  of  year,  in  educational  plant  (Schedule  D). 
Total  unexpended  principal,  as  above 


Income  of  Un- 
expended Fund 
during  the  Year 


From 
general 
Invest- 
ments 


From 
special 
Invest- 
ments 


'  The  various  funds  and  their  sources  and  objects  .should  be  described  somewhat  as  shown  in  the  column.  In  institutions  where  a 
large  number  of  such  funds  are  held  these  details  may  be  more  conveniently  published  in  a  separate  hand-book  once  for  all  or 
in  a  special  number  of  the  treasurer's  report.  In  general,  too  little  attention  is  given  to  acknowledging  in  a  regular  formal  manner 
the  donors  of  college  gifts. 


34 


Schedule  Q 


ENDOWMENT  FUNDS  FOR  DESIGNATED  PURPOSES 


Name  and 
Description 


Funds 


Principal 


Total 
princi- 
pal re- 
ceived 
to  be- 
gin- 
ning of 
year 


Addi- 
tions to 
princi- 
pal re- 
ceived 
during 

year 


Total 
princi- 
pal re- 
ceived 
to  end 
of  year 


Expenditures  from  Trincipal  of  Funds 


Description  of 
how  expended 


Total 
amt.  of 
princi- 
pal ex- 
pended 
to 

begin- 
n  ing  of 

year 


Amount 
of  prin- 
cipal 
ex- 
pended 
during 
year 


Total 
amount 
of  prin- 
cipal 
ex- 
pended 
to  end 
of  year 


Unexpended 
Principal  at 
End  of  Year 


In 

general 
Invest- 
ments 


In 
special 
Invest- 
ments 


Income  of  Un- 
expended Fund 
during:  the  Year 


From 
general 
Invest- 
ments 


From, 
special 
Invest- 
ments 


Note.  The  various  funds  and 
their  sources  and  purposes 
should  be  here  described 
somewhat  as  shown  on  sche- 
dule P. 


Funds  expended  on  buildings,  etc.,  such  as 
are  carried  in  the  balance  sheet  as  assets 

Funds  expended  on  teaching,  etc.,  such  as  are 
charged  in  the  income  and  expense  account 

Total  expended  as  above 


35 


Schedule  R 

GAINS  AND  LOSSES  ON  GENERAL  INVESTMENTS 

Balance  of  account  at  beginning  of  year $. 

Gains  on  Sales  of  Securities  during  year % 

Less  Loss  on  Sales  of  Securities  during  year 

Net  Gain  (or  Loss)  during  year $^ 

Balance  of  account  at  end  of  year $. 


36 


Schedule  S 

SURPLUS  ACCOUNTS 

1.  Surplus  of  Income  available  for  Current  Expenses 

Balance  at  beginning  of  year $ 

Net  Income  (or  Deficit)  for  year,  Schedule  A § 

Balance  at  end  of  year,  Schedule  D $ 


2.  Surplus  of  Income  invested  in  Securities  or  Productive  Real  Estate 

General  Special 

Investments  Investments 

Balance  at  beginning  of  year $  $ 

Surplus  of  Income  invested  during  year 

Total %  $ 

Losses  in  Investments  during  the  year 

Balance  at  end  of  the  year,  Schedule  D %  $ 


3.  Income  expended  for  Lands,  Buildings,  and  Equipment.  Educational  Plant 

Expended  from  Income  to  beginning  of  year $ 

Additions  from  Income  during  year $ 

Expended  to  end  of  year.  Schedule  D $ 


37 


Form 


L9-20m-7,'72(Q4038s8)4939A-3,59 


UNIVERSITY  or  CALIIORNIA  LIBRARV.  LOS  ANGELES 
"^  EDUCTION  AND  PSYCHOLOGY  LIBRARY 

This  book  is  DUE  on  the  last  date  stamped  bdov^ 


UCLA-ED/PSYCH  Library 

LB  2334  C21s 


L  005  585  370  9 


D     000  452  479 


